Electricity rates have gone down

Electricity rates have gone down; that’s the word from the Public Utilities Commission in a press release issued late this evening. The Mean Electricity Rate dropped just under six cents from forty-four cents to thirty-eight cents. While the over seven thousand customers accessing the social rate will not see any movement, residential, commercial and even industrial users will. In addition, commercial customers receive a ten dollar decrease in their monthly service charge, industrial users will see a decrease in their monthly demand charge, while GOB will pay seven cents less for street lights which now costs forty-eight cents. According to the release, the new rates are a result of amendments to the 2008 Annual Review Proceeding Final Decision and will remain in effect until June thirtieth, which is the conclusion of the Annual Review Proceeding. Some good news for B.E.L. was found in a public notice on the amendment, in which the commission revealed that is has increased the rate of return for the utility from ten to twelve percent. That release says quote, “certain decisions within the Final Decision were made taking into consideration the then escalating price of oil and other undesirable economic conditions. Since then, the price of oil has been reduced quite dramatically, resulting in much lower energy costs and some improvement in overall economic conditions within the electricity sector. Given these positive developments, the Commission has decided to take advantage of the situation and correct certain irregularities in the way B.E.L. records certain expenses that ultimately result in higher electricity rates to consumers, and to allow BEL to realize the target Rate of Return of twelve percent for the period January first to June thirtieth, 2009, as opposed to the ten percent approved in the Final Decision that was issued June twenty-sixty, 2008.” When News Five contacted B.E.L., we were told that because that utility is challenging the PUC’s 2008 decision in court, they will reserve comment until that matter is resolved. Viewers will recall that for much of last year the two organizations were locked in public battle over rates which escalated when the PUC denied B.E.L. request for a rate increase.